Citizens Reverse Mortgage is a division of Citizens State Bank, which was set up in the year 1919 in Texas. The Citizens Reverse Mortgage division deals only in reverse mortgage products. It is not engaged in promoting or selling any other financial products. The main aim of reverse mortgages are that the equity, which remains trapped in the home of senior citizens may be released to some extent. The home essentially needs to be owned by the borrowers.
Affiliate of National Reverse Mortgage Lenders Association:
Citizens Reverse Mortgage is an affiliate of NRMLA or National Reverse Mortgage Lenders Association and also a member of Better Business Bureau. Citizens Reverse Mortgage helps elderly retired people who are 62 years and lack a steady source of income.
Role played by Citizens Reverse Mortgage:
The main function of Citizens Reverse Mortgage is to help senior individuals avail a reverse mortgage loan for funding different financial needs of the borrowers. It has been observed that the main cause of concern after retirement is the nagging feeling that one is without any income and there are daily financial commitments to be met.
The loan availing process:
Basically, the following stages are involved in a loan availing process.
Once it has been decided that an individual wants to opt for a reverse mortgage loan, an application is prepared for the same. One must be aware of the various reverse mortgage products available in the reverse mortgage market. A reverse mortgage product may be either insured by the Fed, or insured by the lender. It may also be uninsured. Sensibly weighing the pros as well as the cons of every reverse mortgage loan program is of utmost importance. The program, which is insured by the Federal government, is HECM or Home Equity Conversion Mortgage.
The Housing and Urban Development (HUD) in USA takes care of the reverse mortgage proceedings. Federal Housing Administration is a branch of HUD. The FHA necessitates that every borrower should take on a counseling session with a counselor approved by the HUD.
Once the loan processing and underwriting has been done with, the closing costs are ascertained and finally the amount is disbursed. The amount may be availed as a lump sum, line of credit or monthly payments.